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R 201337Z APR 06
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UNCLAS SECTION 01 OF 02 ALMATY 001444 
 
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E.O. 12958: N/A 
TAGS: ECON EIND ENRG EPET EFIN KZ
SUBJECT:  KAZAKHSTAN ECONOMIC AND ENERGY UPDATE; APRIL 2 - 
15, 2006 
 
 
ALMATY 00001444  001.2 OF 002 
 
 
¶1.  Summary: This information is drawn primarily from the 
Kazakhstani local press, and has not been checked for 
accuracy.  The opinions and policies expressed in this 
report are those of the authors, not the U.S. Government. 
 
--   Samruk Board of Directors Formed 
--   New Environmental Protection Minister Appointed 
--   Kazakhstani E-government Portal Launched 
--   Bank TuranAlem to Become More Transparent 
--   Kazakhtelecom to Strengthen Its Market Position 
--   TCO's General Director Changed 
--   Kurmangazy Operator Starts Drilling First Well 
--   Basell, KMG, SAT Sign MOU for Petrochemical Complex 
--   Russia-China Pipeline Might Go through Kazakhstan 
 
Samruk Board of Directors Formed 
-------------------------------- 
 
¶2.  On April 7, Prime-Minister Akhmetov signed a decree 
forming the Board of Directors of the National Holding 
Company Samruk.  It names the following members: Deputy 
Minister of Economy and Budget Planning Bolat Palymbetov, 
Deputy Minister of Finance Askar Yelemessov, former Minister 
of Industry and Trade Sauat Mynbayev (named Samruk Executive 
Director), and current Halyk Bank Board Chair Alexander 
Pavlov (named Samruk Independent Director).  Timur Kulibayev 
was appointed Deputy Executive Director.  Kulibayev, 39, 
President Nazarbayev's son-in-law, resigned from the 
position of the First Vice-President of national oil company 
KazMunayGaz in late October 2005.  (Interfax - Kazakhstan, 
April 12) 
 
New Environmental Protection Minister Appointed 
--------------------------------------------- -- 
 
¶3.  President Nazarbayev signed a decree on the appointment 
of Nurlan Iskakov as the Environmental Protection Minister 
of Kazakhstan.  Prior to this, Iskakov worked in the 
Presidential Administration and was Deputy Minister of 
Environment Protection.  Former Minister Kamaltin 
Mukhamedzhanov held this position from January to March 2006 
and was dismissed upon his own request.  (Interfax - 
Kazakhstan, April 3) 
 
Kazakh E-government Portal Launched 
----------------------------------- 
 
¶4.  The State Agency for Informatization and Communications 
launched an e-government web portal (www.e.gov.kz), the 
Agency's press service reported.  The project was 
implemented within the framework of the State Program for 
Setting up E-government in 2005-2007.  (Interfax - 
Kazakhstan, 13 April) 
 
Bank TuranAlem to Become More Transparent 
----------------------------------------- 
 
¶5.  Kazakhstan's Bank TuranAlem (BTA) and Financial 
Supervision Agency (FSA) signed a memorandum on Cooperation 
in Promoting Transparency of BTA Operations.  "The 
memorandum is aimed to meet legislative requirements and to 
increase the level of public trust to the banking system," 
the bank's press release reads.  Per this agreement, BTA 
"voluntary assumes obligations to divulge information on the 
bank's owners, reveal the list of organizations controlled 
by the bank as well as information on representatives of 
shareholders and independent executive directors in the 
board, banks' development strategy and priorities." 
(Interfax - Kazakhstan, April 11) 
 
Kazakhtelecom to Strengthen Its Market Position 
--------------------------------------------- -- 
 
¶6.  Kazakhtelecom shareholders approved transactions to 
acquire a 100% share of Mobile Telecom Service, an 
 
ALMATY 00001444  002.2 OF 002 
 
 
additional 50% share of Altel, and 54% of Nursat, in 
exchange for $220 million, Kazakhtelecom announced. 
According to this information, Kazakhtelecom stockholders 
already approved the new company's charter and new internal 
corporate rules.  Kazakhtelecom previously held 50% in 
Altel, while Wireless Technology Corporation owned the other 
50%.  After wrapping up the deal, Kazakhtelecom will become 
a 100% owner of Altel.  (Interfax - Kazakhstan, April 7) 
 
TCO's General Director Changed 
------------------------------ 
 
¶7.  On April 1, Todd Levy was named new General Director of 
TengizChevrOil (TCO) TCO's press-service reported.  Before 
this appointment, Levy was Chevron's Operations General 
Manager in the Gulf of Mexico.  Earlier Levy took part in 
various projects in Angola, Australia and Australasia. 
TCO's former General Director Alexander Cornelius, will 
assume a position as Vice-President in one of Chevron's 
companies in the U.S.  (Interfax - Kazakhstan, April 10) 
 
Kurmangazy Operator Starts Drilling First Well 
--------------------------------------------- - 
 
¶8.  On April 12, Kurmangazy Petroleum (a subsidiary of 
KazMunayTeniz, KazMunayGaz's subsidiary), the operator for 
the development of the Kurmangazy structure in the Caspian 
Sea, started drilling its first exploration, the press- 
release announced.  According to the statement, Lukoil Shelf 
Limited is the drilling subcontractor.  The work cycle to 
drill a well to a design depth of 2,000 meters lasts 78 
days.  Sea depth at the drilling site is about six meters. 
The project is being undertaken on a parity basis by 
KazMunayTeniz and RN-Kazakhstan, Rosneft subsidiary. 
Kurmangazy PSA was signed on July 6, 2005. 
(KazMunayTeniz/RN Kazakhstan press-release, April 12) 
 
Basell, KMG, SAT Sign MOU for Petrochemical Complex 
--------------------------------------------- ------ 
 
¶9.  On March 27, Basell has signed a Memorandum of 
Understanding (MOU) with KazMunayGaz Exploration & 
Production (KazMunayGaz's operating subsidiary) and 
SAT&Company (privately owned conglomerate with industrial, 
commercial and service activities) confirming its intention 
to construct and operate a new petrochemical project in 
Kazakhstan.  The project is expected to include an ethane 
extraction unit in Kulsary and an integrated petrochemical 
complex in Atyrau.  The planned petrochemical complex 
includes an ethane cracker and polyethylene facilities, as 
well as a propane dehydrogenation unit and polypropylene 
facility.  Start up is planned for 2010.  In addition to 
providing technology, sales, and marketing services, Basell 
intends to participate directly as a shareholder in the 
project.  (Basell press-release, March 31) 
 
Russia-China Pipeline Might Go through Kazakhstan 
--------------------------------------------- ---- 
 
¶10.  On April 4, following discussions with Russian 
President Putin, Kazakhstan's President Nazarbayev announced 
that the two presidents had "discussed the possibility that 
Western Siberian oil would transit Kazakhstan for delivery 
to China.  It is possible to develop a similar route for 
both a gas pipeline and electric power.  All these tasks are 
solvable."  (RIA News - Russia, April 4) 
 
ORDWAY